Swiggy Allots 38.8 Lakh Shares Under ESOP Scheme

Swiggy Allots 38.8 Lakh Shares Under ESOP Scheme. Swiggy, one of India’s leading food delivery and quick commerce platforms, has once again made headlines by allotting a significant number of equity shares under its employee stock option plan (ESOP). The company has approved the allotment of 38.86 lakh equity shares under the Swiggy Employees Stock Option Plan 2024. This move comes amidst a challenging operational and financial environment for the company, including growing losses and a shifting focus on new ventures. This article will explain all aspects of this development in detail, including its impact, background, financial relevance, and future strategy.
Learn more about Different Types of ESOP .
Swiggy Approved 38.8 Lakh Shares Under ESOP Scheme
Swiggy’s board of directors approved the allotment of 38,86,049 equity shares to eligible employees as part of its Swiggy Employees Stock Option Plan 2024. This scheme is designed to reward employees for their contributions and motivate them to stay invested in the long-term growth of the company. The number 38.8 lakh shares is quite substantial and reflects Swiggy's continued commitment to employee ownership. Employee stock options are a way to offer company shares at a predetermined price, often much lower than the market rate. These shares will be issued at a face value of INR 1 per share, making them highly valuable when compared with the current stock price in the market.
Market Value of the Allotted Shares
The allotment, based on the last closing price of INR 385.15 per share, translates into a total market value of approximately INR 149.67 Crore (or $17.4 Million). This shows the significant monetary benefit provided to the employees through this allocation. It also demonstrates how much the company values its workforce. Despite being issued at a nominal face value of INR 1, the shares have substantial real market value, which may increase further if the company's performance improves in the future. This is a common strategy used by startups and listed companies to retain top talent and align employee goals with business success.
To Learn more about ESOPs Compliance Checklist and Procedure.
Background of Swiggy's ESOP Strategy
This is not the first time Swiggy has issued ESOPs in large numbers. Since January 2025 alone, the company has allotted over 6.68 crore equity shares under multiple ESOP schemes. This includes:

2.61 Cr equity shares in January

1.71 Cr shares and 8.64 Lakh shares in February

1.28 Cr shares in April

Such frequent and large-scale allotments highlight how Swiggy is aggressively using ESOPs as a compensation tool. It’s a clear indication that the company sees employee equity as an important part of its reward system, especially at a time when financial pressures and strategic realignments are becoming more visible.
Swiggy’s Journey on the Stock Exchange
Swiggy made its stock market debut in November 2024, with listings on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The company was listed at INR 420 on the NSE and INR 412 on the BSE, both of which were above the IPO issue price of INR 390 per share. Despite this strong debut, the stock has seen a 6.5% decline in its value since its listing on the BSE. While this is not an alarming drop, it does reflect investor caution regarding Swiggy’s future profitability and operational efficiency. This decline also shows how market sentiment is affected by the company’s financials and strategic decisions.
Operational Setbacks and Platform Challenges
Swiggy is not just a food delivery platform anymore. Over the years, it has expanded into various segments under the umbrella of “Platform Innovations”. However, not all of these innovations have been successful. Recently, Swiggy had to shut down Swiggy Minis, a SaaS platform that aimed to offer small business services. In May 2025, the company also suspended Swiggy Genie, a hyperlocal delivery service that once helped users send or receive items across the city.
These decisions reflect a re-evaluation of business priorities and indicate that Swiggy is now focusing on core operations and long-term profitable ventures. The company is carefully assessing which verticals offer growth and sustainability in the current market environment.
Launched New Vertical Labels
Even as Swiggy closed down some of its underperforming services, it didn’t stop experimenting. The company recently launched new initiatives under different labels. These include:

Swiggy Crew, a travel and lifestyle concierge service app.

Swiggy Pyng, a home services platform aimed at providing everyday assistance at the doorstep.

This shows that Swiggy is not giving up on innovation. It is simply shifting its focus from platforms that were not performing well to those that promise better user engagement, customer satisfaction, and monetization potential.
Learn more about Startup Funding and ESOPs Employee Stock Options for Growth.
Swiggy’s Financial Performance in Q4 FY25
On the financial front, Swiggy’s consolidated performance for Q4 of FY25 revealed some alarming trends. The company’s net loss surged by 95% YoY, reaching INR 1,081.2 Crore. This steep rise in losses was primarily driven by heavy investments and operational expenses related to its quick commerce business, particularly Instamart. Despite the losses, there was some good news. Swiggy’s operating revenue increased by 45% YoY, reaching INR 4,410 Crore as compared to INR 3,045.6 Crore in the same quarter of the previous year. This indicates growing user demand and successful monetization of some business lines, even though profitability remains a concern.
Performance of Swiggy Instamart
Swiggy Instamart, the company’s quick commerce segment, continues to remain in focus. However, it is also responsible for a large portion of the company’s financial losses. For Q4 FY25 alone, Instamart reported a loss of INR 770.9 Crore, which is a 182% YoY increase compared to a loss of INR 272.7 Crore in the corresponding quarter last year. Instamart has been important for Swiggy’s expansion strategy, targeting the 10-minute grocery delivery segment. But the costs associated with warehousing, logistics, discounts, and operational staff have sharply increased, putting pressure on margins.
CEO’s Optimism on the Quick Commerce Segment
Despite the rising losses, Swiggy’s co-founder and CEO Sriharsha Majety remains optimistic. In a recent investor event organized by Prosus in London, he shared that the Indian quick commerce market could become a $30 Billion to $40 Billion opportunity within the next 3 to 5 years. He also mentioned that Swiggy’s Instamart is aiming for overall contribution margin breakeven between October and December 2025. This suggests that the company is ready to take short-term losses in exchange for long-term market capture and profitability.
Majety’s outlook is not without merit. The quick commerce sector in India is expanding rapidly, with increasing demand for instant grocery and essential deliveries. If Swiggy manages its costs well and maintains service quality, it can become a dominant player in this space.
Importance of ESOPs in a Competitive Talent Market
Startup ecosystem of India retaining skilled talent is a challenge. High employee turnover and rising competition for tech and operations roles have led companies to adopt equity-based compensation models. Swiggy’s decision to allot 38.8 lakh shares under ESOP is a move to attract, retain, and reward its top performers. Such allotments align employee interests with company performance. When employees hold shares, they become more committed to the company’s success. It also gives them a sense of ownership, which in turn can lead to better productivity and innovation.
Additionally, ESOPs help Swiggy remain competitive when compared to rivals like Zomato, Blinkit, Zepto, and BigBasket, who are also aggressively hiring and innovating in the same market segments.
Swiggy’s Future Outlook
Swiggy's current strategy seems to be focused on selective innovation, operational consolidation, and aggressive expansion in high-potential verticals like quick commerce and home services. While the company is still far from profitability, the revenue growth indicates that customers are responding well to its evolving offerings.
The ESOP allotment is a reflection of the company’s internal focus. By empowering its workforce with equity, Swiggy is building a more committed and aligned team to take the company forward during challenging times. As the Indian consumer tech and delivery markets evolve, Swiggy will have to balance growth with profitability. The next two years, especially with CEO Majety’s contribution margin breakeven target for Instamart, will be important in determining the company's financial health and public perception.
The allotment of 38.86 lakh equity shares under the Swiggy Employees Stock Option Plan 2024 is more than just a stock distribution move; it is a strong internal signal of trust, motivation, and future alignment. Despite rising losses and operational restructuring, Swiggy continues to reward its employees and invest in potential high-growth areas like quick commerce and home services.
With strategic exits from non-performing verticals, a focus on contribution margin, and a clear view on the future of delivery and commerce in India, Swiggy is attempting to recalibrate its business in line with market expectations. While risks remain, especially with mounting losses, the commitment to ESOP-driven growth and CEO Majety’s confidence in the future may well help Swiggy stay competitive in India's crowded startup ecosystem.
FAQs
Q1. What is the recent Swiggy ESOP allotment all about?
Ans. Swiggy has approved the allotment of 38.86 lakh equity shares to its employees under the Swiggy Employees Stock Option Plan 2024. This means eligible employees will receive shares of the company at a very low price (INR 1 per share), giving them an opportunity to own part of the company. It is a way to reward and motivate employees.
Q2. What is the total value of these newly allotted Swiggy shares?
Ans. Based on Swiggy’s last closing stock price of INR 385.15 per share, the value of these 38.86 lakh shares is about INR 149.67 crore, which is around $17.4 million. This shows how valuable these shares are for employees and highlights the company’s focus on employee benefits.
Q3. What is the face value and exercise price of these shares?
Ans. The shares are allotted at a face value of INR 1 per share. The exercise price, which is the price employees need to pay to get these shares, is also set at INR 1. This is much lower than the market price, giving employees an immediate financial advantage.
Q4. Why does Swiggy offer shares to employees through ESOPs?
Ans. Swiggy uses ESOPs to attract and retain talented employees. By giving them company shares, employees feel more connected and responsible for the company’s growth. It also acts as a strong incentive, motivating them to work harder and stay with the company for longer.
Q5. How has Swiggy’s stock performed since its listing?
Ans. Swiggy got listed in November 2024 at INR 420 on NSE and INR 412 on BSE. Since listing on the BSE, the stock has dropped by about 6.5%. While this decline shows some investor caution, Swiggy continues to focus on long-term growth despite short-term challenges.
Q6. What other ESOP allotments did Swiggy make recently?
Ans. Before this latest allotment, Swiggy had already allotted large numbers of shares: 2.61 crore shares in January 2025, 1.71 crore and 8.64 lakh shares in February, and 1.28 crore shares in April, under different ESOP plans. This shows a continuous effort to strengthen employee ownership.
Q7. What financial challenges is Swiggy currently facing?
Ans. Swiggy reported a net loss of INR 1,081.2 crore in Q4 FY25, which is a 95% increase from the previous year. The company’s quick commerce segment, Instamart, contributed heavily to this loss, incurring INR 770.9 crore loss in the same quarter. However, revenue grew 45% to INR 4,410 crore, showing strong business traction.
Q8. What is Swiggy Instamart, and why is it important?
Ans. Swiggy Instamart is the company’s quick commerce grocery delivery service, offering rapid deliveries of everyday items. It is an important part of Swiggy’s strategy to diversify beyond food delivery. Despite heavy losses, the company believes Instamart will become profitable in the future and capture a large market share.
Q9. What new services is Swiggy introducing besides food delivery?
Ans. Swiggy is introducing services like Swiggy Crew, a travel and lifestyle concierge service, and Swiggy Pyng, a home services platform. These new ventures show Swiggy’s focus on expanding into different service areas and finding new revenue streams beyond its core food delivery business.
Q10. What is the future outlook for Swiggy?
Ans. Despite its current losses, Swiggy’s leadership is optimistic. CEO Sriharsha Majety believes that the quick commerce market in India can become a $30 billion to $40 billion opportunity in the next few years. With plans to achieve contribution margin breakeven for Instamart by the end of 2025 and continued employee-focused incentives like ESOPs, Swiggy is betting on strong future growth.

Swiggy, one of India’s leading food delivery and quick commerce platforms, has once again made headlines by allotting a significant number of equity shares under its employee stock option plan (ESOP). The company has approved the allotment of 38.86 lakh equity shares under the Swiggy Employees Stock Option Plan 2024. This move comes amidst a challenging operational and financial environment for the company, including growing losses and a shifting focus on new ventures. This article will explain all aspects of this development in detail, including its impact, background, financial relevance, and future strategy.

Learn more about Different Types of ESOP .

Swiggy Approved 38.8 Lakh Shares Under ESOP Scheme

Swiggy’s board of directors approved the allotment of 38,86,049 equity shares to eligible employees as part of its Swiggy Employees Stock Option Plan 2024. This scheme is designed to reward employees for their contributions and motivate them to stay invested in the long-term growth of the company. The number 38.8 lakh shares is quite substantial and reflects Swiggy's continued commitment to employee ownership. Employee stock options are a way to offer company shares at a predetermined price, often much lower than the market rate. These shares will be issued at a face value of INR 1 per share, making them highly valuable when compared with the current stock price in the market.

Market Value of the Allotted Shares

The allotment, based on the last closing price of INR 385.15 per share, translates into a total market value of approximately INR 149.67 Crore (or $17.4 Million). This shows the significant monetary benefit provided to the employees through this allocation. It also demonstrates how much the company values its workforce. Despite being issued at a nominal face value of INR 1, the shares have substantial real market value, which may increase further if the company's performance improves in the future. This is a common strategy used by startups and listed companies to retain top talent and align employee goals with business success.

To Learn more about ESOPs Compliance Checklist and Procedure.

Background of Swiggy's ESOP Strategy

This is not the first time Swiggy has issued ESOPs in large numbers. Since January 2025 alone, the company has allotted over 6.68 crore equity shares under multiple ESOP schemes. This includes:

2.61 Cr equity shares in January
1.71 Cr shares and 8.64 Lakh shares in February
1.28 Cr shares in April

Swiggy’s Journey on the Stock Exchange

Swiggy made its stock market debut in November 2024, with listings on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The company was listed at INR 420 on the NSE and INR 412 on the BSE, both of which were above the IPO issue price of INR 390 per share. Despite this strong debut, the stock has seen a 6.5% decline in its value since its listing on the BSE. While this is not an alarming drop, it does reflect investor caution regarding Swiggy’s future profitability and operational efficiency. This decline also shows how market sentiment is affected by the company’s financials and strategic decisions.

Operational Setbacks and Platform Challenges

Swiggy is not just a food delivery platform anymore. Over the years, it has expanded into various segments under the umbrella of “Platform Innovations”. However, not all of these innovations have been successful. Recently, Swiggy had to shut down Swiggy Minis, a SaaS platform that aimed to offer small business services. In May 2025, the company also suspended Swiggy Genie, a hyperlocal delivery service that once helped users send or receive items across the city.

These decisions reflect a re-evaluation of business priorities and indicate that Swiggy is now focusing on core operations and long-term profitable ventures. The company is carefully assessing which verticals offer growth and sustainability in the current market environment.

Launched New Vertical Labels

Even as Swiggy closed down some of its underperforming services, it didn’t stop experimenting. The company recently launched new initiatives under different labels. These include:

Swiggy Crew, a travel and lifestyle concierge service app.
Swiggy Pyng, a home services platform aimed at providing everyday assistance at the doorstep.

Learn more about Startup Funding and ESOPs Employee Stock Options for Growth.

Swiggy’s Financial Performance in Q4 FY25

On the financial front, Swiggy’s consolidated performance for Q4 of FY25 revealed some alarming trends. The company’s net loss surged by 95% YoY, reaching INR 1,081.2 Crore. This steep rise in losses was primarily driven by heavy investments and operational expenses related to its quick commerce business, particularly Instamart. Despite the losses, there was some good news. Swiggy’s operating revenue increased by 45% YoY, reaching INR 4,410 Crore as compared to INR 3,045.6 Crore in the same quarter of the previous year. This indicates growing user demand and successful monetization of some business lines, even though profitability remains a concern.

Performance of Swiggy Instamart

Swiggy Instamart, the company’s quick commerce segment, continues to remain in focus. However, it is also responsible for a large portion of the company’s financial losses. For Q4 FY25 alone, Instamart reported a loss of INR 770.9 Crore, which is a 182% YoY increase compared to a loss of INR 272.7 Crore in the corresponding quarter last year. Instamart has been important for Swiggy’s expansion strategy, targeting the 10-minute grocery delivery segment. But the costs associated with warehousing, logistics, discounts, and operational staff have sharply increased, putting pressure on margins.

CEO’s Optimism on the Quick Commerce Segment

Despite the rising losses, Swiggy’s co-founder and CEO Sriharsha Majety remains optimistic. In a recent investor event organized by Prosus in London, he shared that the Indian quick commerce market could become a $30 Billion to $40 Billion opportunity within the next 3 to 5 years. He also mentioned that Swiggy’s Instamart is aiming for overall contribution margin breakeven between October and December 2025. This suggests that the company is ready to take short-term losses in exchange for long-term market capture and profitability.

Majety’s outlook is not without merit. The quick commerce sector in India is expanding rapidly, with increasing demand for instant grocery and essential deliveries. If Swiggy manages its costs well and maintains service quality, it can become a dominant player in this space.

Importance of ESOPs in a Competitive Talent Market

Startup ecosystem of India retaining skilled talent is a challenge. High employee turnover and rising competition for tech and operations roles have led companies to adopt equity-based compensation models. Swiggy’s decision to allot 38.8 lakh shares under ESOP is a move to attract, retain, and reward its top performers. Such allotments align employee interests with company performance. When employees hold shares, they become more committed to the company’s success. It also gives them a sense of ownership, which in turn can lead to better productivity and innovation.

Additionally, ESOPs help Swiggy remain competitive when compared to rivals like Zomato, Blinkit, Zepto, and BigBasket, who are also aggressively hiring and innovating in the same market segments.

Swiggy’s Future Outlook

Swiggy's current strategy seems to be focused on selective innovation, operational consolidation, and aggressive expansion in high-potential verticals like quick commerce and home services. While the company is still far from profitability, the revenue growth indicates that customers are responding well to its evolving offerings.

The ESOP allotment is a reflection of the company’s internal focus. By empowering its workforce with equity, Swiggy is building a more committed and aligned team to take the company forward during challenging times. As the Indian consumer tech and delivery markets evolve, Swiggy will have to balance growth with profitability. The next two years, especially with CEO Majety’s contribution margin breakeven target for Instamart, will be important in determining the company's financial health and public perception.

The allotment of 38.86 lakh equity shares under the Swiggy Employees Stock Option Plan 2024 is more than just a stock distribution move; it is a strong internal signal of trust, motivation, and future alignment. Despite rising losses and operational restructuring, Swiggy continues to reward its employees and invest in potential high-growth areas like quick commerce and home services.

With strategic exits from non-performing verticals, a focus on contribution margin, and a clear view on the future of delivery and commerce in India, Swiggy is attempting to recalibrate its business in line with market expectations. While risks remain, especially with mounting losses, the commitment to ESOP-driven growth and CEO Majety’s confidence in the future may well help Swiggy stay competitive in India's crowded startup ecosystem.

FAQs

Q1. What is the recent Swiggy ESOP allotment all about?

Ans. Swiggy has approved the allotment of 38.86 lakh equity shares to its employees under the Swiggy Employees Stock Option Plan 2024. This means eligible employees will receive shares of the company at a very low price (INR 1 per share), giving them an opportunity to own part of the company. It is a way to reward and motivate employees.

Q2. What is the total value of these newly allotted Swiggy shares?

Ans. Based on Swiggy’s last closing stock price of INR 385.15 per share, the value of these 38.86 lakh shares is about INR 149.67 crore, which is around $17.4 million. This shows how valuable these shares are for employees and highlights the company’s focus on employee benefits.

Q3. What is the face value and exercise price of these shares?

Ans. The shares are allotted at a face value of INR 1 per share. The exercise price, which is the price employees need to pay to get these shares, is also set at INR 1. This is much lower than the market price, giving employees an immediate financial advantage.

Q4. Why does Swiggy offer shares to employees through ESOPs?

Ans. Swiggy uses ESOPs to attract and retain talented employees. By giving them company shares, employees feel more connected and responsible for the company’s growth. It also acts as a strong incentive, motivating them to work harder and stay with the company for longer.

Q5. How has Swiggy’s stock performed since its listing?

Ans. Swiggy got listed in November 2024 at INR 420 on NSE and INR 412 on BSE. Since listing on the BSE, the stock has dropped by about 6.5%. While this decline shows some investor caution, Swiggy continues to focus on long-term growth despite short-term challenges.

Q6. What other ESOP allotments did Swiggy make recently?

Ans. Before this latest allotment, Swiggy had already allotted large numbers of shares: 2.61 crore shares in January 2025, 1.71 crore and 8.64 lakh shares in February, and 1.28 crore shares in April, under different ESOP plans. This shows a continuous effort to strengthen employee ownership.

Q7. What financial challenges is Swiggy currently facing?

Ans. Swiggy reported a net loss of INR 1,081.2 crore in Q4 FY25, which is a 95% increase from the previous year. The company’s quick commerce segment, Instamart, contributed heavily to this loss, incurring INR 770.9 crore loss in the same quarter. However, revenue grew 45% to INR 4,410 crore, showing strong business traction.

Q8. What is Swiggy Instamart, and why is it important?

Ans. Swiggy Instamart is the company’s quick commerce grocery delivery service, offering rapid deliveries of everyday items. It is an important part of Swiggy’s strategy to diversify beyond food delivery. Despite heavy losses, the company believes Instamart will become profitable in the future and capture a large market share.

Q9. What new services is Swiggy introducing besides food delivery?

Ans. Swiggy is introducing services like Swiggy Crew, a travel and lifestyle concierge service, and Swiggy Pyng, a home services platform. These new ventures show Swiggy’s focus on expanding into different service areas and finding new revenue streams beyond its core food delivery business.

Q10. What is the future outlook for Swiggy?

Ans. Despite its current losses, Swiggy’s leadership is optimistic. CEO Sriharsha Majety believes that the quick commerce market in India can become a $30 billion to $40 billion opportunity in the next few years. With plans to achieve contribution margin breakeven for Instamart by the end of 2025 and continued employee-focused incentives like ESOPs, Swiggy is betting on strong future growth.